Changes in overtime pay
Over the last 3 years, several issues have come upon businesses surrounding changes in employment law. With minimum wages on the rise and tax codes being revamped, small business owners need to pay closer attention to what pertains to their business than ever before. It is no small task. Unless you are regularly looking for this information, it is likely that a large portion of small business owners are missing something.   Being busy or being caught unawares is no excuse to the powers that be. Keeping up with HR law is, fortunately or unfortunately, your own responsibility. But no one ever decided to become a small business owner because they love employment law, unless of course you are an employment law attorney with their own practice!  

Skirting Changes In Employment Law Around Obamacare Doesn’t Pay

  With the ACA came rules around what was considered a full-time employee and with that came the responsibility of paying taxes on all full-time employees and also making sure they were offered health care benefits. When this rule has handed down, many small businesses decided to opt out of hiring full-time or 40 hour per week employees in favor of part-time workers at less than 30 hours. This idea was born out of the idea that if everyone was under the full-time water mark they would not need offer health insurance and wouldn’t have to pay the new taxes associated with full-time employees under the new ACA.   Not so fast though. In case you were not aware, the government has decided to instead take two workers that have combined hours of 40 hours per week and count them as one full-time employee thus still making follow the ACA rules around employment accordingly.   Failure to have an accurate hourly count per employee and report it to the IRS results in fines and penalties amounting to $2000 per employee. If you are trying to save money on overhead, this is a risky way to go about it. In the end, it is better to do the right thing the first time around.  

What Employment Law States With Insurance Coverage

  For small businesses with less than 50 employees, you are not required to offer a healthcare plan but your employees are still obligated to acquire health insurance on their own. For this reason, many employees are looking to work for companies that provide it so they are not absorbing all of the cost on their own.   This conundrum leaves many small businesses wondering how they can compete in an “Insurance Required” world. There are options for employees in obtaining health insurance on their own, but many of those plans are unattractive and some are very expensive when they compare them to the coverage of their large company working counterparts.   This is only one aspect of changes in employment law that small businesses need to pay attention to. There are also many laws that pertain to them for both federal and state. In order to best serve you and to try to digest as much information into one easier to read document, the Employment Laws Chart was created.     What is listed in the chart is just the federal laws that pertain to employment law across the United States. For employment laws that pertain to your individual state, you will need to seek those out locally.   There is help if you need it. Navigating all the laws that need adhering to as a small business owner can be very daunting and even discouraging, but it doesn’t have to be that way. PEOs can be the answer that many small business owners are looking for in successfully managing a business in accordance with changes in employment law in general, and new laws around health care coverage. Not to mention, they provide a much more attractive benefits package at an affordable rate that would never be attainable for a small business owner to do on their own.   Having a PEO manage your all of your employment law and HR functions while you work on growing your business has been the right choice for thousands of small businesses. Find out about how a PEO can work for your business and stop worrying about changes in employment law.  

If you’d like to find out more about how PEOs can help you provide great benefits and payroll management at less than you are paying now, contact us today for a free consultation.

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